Everyone's favourite financial guru was back on television screens this week, as Martin Lewis brought all his money-saving expertise to the UK.
On the latest episode of The Martin Lewis Money Show, the expert shared some important advice for those who have credit card debt building up, reports Wales Online. Martin asked the studio audience which card should be paid off first, and one woman was straight there with the answer - "the one with the highest interest rate".
Martin then went on to explain that most people would select the card with the most debt on it to clear - but this isn't the right move. The smartest thing to do is to pay off the card with the highest interest rate, or APR, first.
READ MORE - King Charles steps in to stop sacking of Princes Andrew and Harry from major job
He said: "Always when you've got debt, you list them in order and you prioritise the one with the highest APR , the highest interest rate, because it's growing more quickly."
Martin also added that people must remember to pay the minimum payments on the other cards as well. Then, once the first card is paid off, switch the payments to the next card with the highest interest, and so on.
Martin added: "You just pay the minimums on everything else and then when that one's gone, you focus on the next highest. Because if you do them all equally on all of them, you've got the one that's growing most quickly and you're not trying to get rid of it."
The reason for this is that the high-interest card is growing faster than the other cards. This means that by paying it off first, you are cutting down on the repayments in the long run. Martin also said: "Focus your repayments on the highest interest rate and just the minimums on everything else, if you've got multiples, and include your overdraft on that.
"Overdrafts these days are around 40 per cent, danger debt, really danger debt. Much more expensive than most credit cards."
The Martin Lewis Money Show is on ITV on Tuesdays at 8pm, or you can catch up on ITV Player.
READ NEXT:
Passenger praised for refusing to give up seat to elderly woman on train to Scotland
English driver travels 500 miles to Scotland to take 'easiest driving test' in UK
Edinburgh to get a new 'state of the art' inflatable park with party zones and arcade
Deaf Edinburgh dog looking for a compassionate new home with short walks
I tried to buy a used car in Edinburgh and the experience sent me over the edge
